A teller counts U.S. dollar bills at a bank in Qionghai, south China’s Hainan Province.Photo:Xinhua
Chinese holdings of US Treasury bonds fell further to $769.6 billion in October, marking a seventh consecutive monthly drop, according to data released by the US Department of the Treasury on Tuesday.
As the second largest holder of US government debt, China’s holding in October came down by $8.5 billion from September. It marks the 19th consecutive month that China’s holdings of US Treasury notes have been below $1 trillion.
China’s overall holdings of US Treasury bonds have decreased by a total of $97.5 billion within 2023.
The “mismatch between supply and demand” of US Treasury bonds, combined with the US Federal Reserve’s monetary tightening measures, has created downward pressure on the appeal of US bonds, and the adjustment is also “a proactive move by China” to optimize and diversify its holdings of overseas assets,…
